Wage theft - members owed thousands
- Created on Tuesday, 01 August 2017 21:26
You may not consider wage theft a common concern but it is increasingly being used as a business model due to the inefficiency of industrial relations laws. We've been working hard to retrieve money which was deliberately and systematically stolen from our members in the Tasmanian private sector, with multiple instances of significant underpayments being uncovered in the past twelve months.
Currently, three ASU members who were employed at the Royal Gurkhas Institute of Technology (RGIT), a registered training organisation in Hobart which provides training to international students in business management, English language and hospitality, are seeking to retrieve wages which were due to them when the employer chose to pay wage rates significantly lower than the minimum wage under the relevant modern award.
The underpayment totals some $20,000 with amounts owed ranging between $2,000 for a member who was only with the employer for 3 months, up to $11,500 for another member who was employed for 15 months.
Wage rates being paid were up to $7.56 per hour less than the minimum wage.
The members have been seeking compensation for these underpayments for three months now. What makes this situation worse is the fact that the employer has been under investigation by the training regulator (ASQA) and has had their registration all but cancelled, due to failures discovered in the provision of training to the students and for a lack of facilities.
The ASU will be seeking to recover these underpayments through the Federal Circuit Court if the employer continues to refuse to communicate in relation to these underpayments.
Members should check that they are being paid correctly, and if unsure what rate should apply then please contact the ASU Member Contact Centre on 1300 855 570.